Consolidated Statement of Changes in Net Assets Toagosei Co., Ltd. and Consolidated Subsidiaries Millions of yen Shareholders’ equity Year ended December 31, 2008 Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at December 31, 2007 .................................. \20,886 \15,073 \64,096 \(725) \99,331 Cash dividends ...................................................... (2,088) (2,088) Net income ........................................................... 1,895 1,895 Purchases of treasury stock .................................... (202) (202) Gain on sales of treasury stock .............................. 12 50 62 Net changes in items other than shareholders’ equity... Balance at December 31, 2008 .................................. \20,886 \15,085 \63,904 \(877) \98,999 Thousands of U.S. dollars (Note 3) Shareholders’ equity Year ended December 31, 2008 Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at December 31, 2007 .................................. $229,445 $165,586 $704,129 $(7,965) $1,091,197 Cash dividends ...................................................... (22,938) (22,938) Net income ........................................................... 20,826 20,826 Purchases of treasury stock .................................... (2,227) (2,227) Gain on sales of treasury stock .............................. 135 554 690 Net changes in items other than shareholders’ equity... Balance at December 31, 2008 .................................. $229,445 $165,722 $702,017 $(9,638) $1,087,547 Millions of yen Valuation and translation adjustments Year ended December 31, 2008 Unrealized holding gain on securities Unrealized gain on hedging derivatives Translation adjustments Total valuation and translation adjustments Minority interests Total net assets Balance at December 31, 2007 .................................. \5,841 \2 \ 163 \6,007 \13,599 \118,939 Cash dividends ...................................................... (2,088) Net income ........................................................... 1,895 Purchases of treasury stock .................................... (202) Gain on sales of treasury stock .............................. 62 Net changes in items other than shareholders’ equity... (4,794) (2) (938) (5,735) 177 (5,558) Balance at December 31, 2008 .................................. \1,047 \0 \(775) \ 272 \13,776 \113,048 Thousands of U.S. dollars (Note 3) Valuation and translation adjustments Year ended December 31, 2008 Unrealized holding gain on securities Unrealized gain on hedging derivatives Translation adjustments Total valuation and translation adjustments Minority interests Total net assets Balance at December 31, 2007 .................................. $64,173 $32 $ 1,791 $65,996 $149,398 $1,306,592 Cash dividends ...................................................... (22,938) Net income ........................................................... 20,826 Purchases of treasury stock .................................... (2,227) Gain on sales of treasury stock .............................. 690 Net changes in items other than shareholders’ equity... (52,668) (26) (10,308) (63,004) 1,946 (61,057) Balance at December 31, 2008 .................................. $11,504 $ 5 $(8,517) $ 2,992 $151,345 $1,241,884 See accompanying notes to consolidated financial statements. Toagosei Co., Ltd. 29